Money and Credit Quiz

Which of the following is not a modern form of money?

• Currency

• Demand Deposits

• Gold

• Cheques

What is the main function of a bank?

• To print money

• To produce coins

• To accept deposits and lend money

• To sell goods

Who issues currency notes on behalf of the central government in India?

• Ministry of Finance

• State Bank of India

• Reserve Bank of India

• Supreme Court

Which of the following is an informal source of credit?

• Cooperative society

• Moneylender

• Commercial Bank

• Self Help Group

Which is the most essential feature of money?

• Attractive design

• Durability

• Acceptability

• Divisibility

A person takes a loan from a bank. What is this activity called?

• Investment

• Borrowing

• Saving

• Trading

In which country is Grameen Bank located?

• India

• Bangladesh

• Nepal

• Sri Lanka

Which of the following is an advantage of formal sources of credit?

• No paperwork

• High rate of interest

• Easily available without guarantee

• Regulated by law

What is collateral?

• A type of deposit

• A cheque

• Asset used as guarantee for loan

• Cash payment

Which of these groups receives the least credit from formal sector?

• Large farmers

• Urban salaried people

• Small farmers

• Industrialists